To immunize your portfolio, you should
A) Avoid callable bonds
B) Match the maturity dates of your coupon bonds to your target date
C) Only buy zero-coupon bonds
D) Purchase only par value bonds
E) Match your portfolio's duration to the target date
Correct Answer:
Verified
Q51: All else the same, as a premium
Q52: For a premium bond, the
A) Current yield
Q53: For an absolute change in interest rates,
Q54: Modified duration is calculated as:
A) Macaulay
Q55: You had created a bond portfolio last
Q57: For a given change in interest rates,
Q58: All else the same, for a callable
Q59: For a given change in interest rates,
Q60: You are buying a $1,000 face value
Q61: In general, the duration of a coupon
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